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Economic Development Department (Los Angeles)

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Economic Development Department (Los Angeles)
NameEconomic Development Department (Los Angeles)
Formation2013
TypeMunicipal department
HeadquartersLos Angeles City Hall
LocationLos Angeles, California
Region servedLos Angeles County, San Fernando Valley, South Los Angeles, Downtown Los Angeles, Harbor Area
Leader titleGeneral Manager
Parent organizationCity of Los Angeles

Economic Development Department (Los Angeles)

The Economic Development Department in Los Angeles is a municipal agency created to coordinate citywide economic development initiatives, business attraction, neighborhood revitalization, and workforce alignment across Los Angeles County, Downtown Los Angeles, and adjacent communities. It operates within the administrative structure of the City of Los Angeles and interacts with regional entities such as the Los Angeles County Economic Development Corporation, Metropolitan Transportation Authority (Los Angeles County), and civic institutions including the Los Angeles Area Chamber of Commerce and University of California, Los Angeles. The department's portfolio includes business assistance, small business financing, development incentives, and community workforce programs that intersect with public agencies and private partners.

History

The department was established in the early 2010s as part of a municipal reorganization to consolidate functions previously housed in the Community Redevelopment Agency of Los Angeles and other bureaus after the dissolution of the CRA. Its formation followed policy debates involving the Los Angeles City Council, mayors such as Eric Garcetti and predecessors like Antonio Villaraigosa, and inputs from civic leaders affiliated with institutions including the Los Angeles County Metropolitan Transportation Authority, Port of Los Angeles, and foundations like the Annenberg Foundation. Early mandates referenced federal programs like the Community Development Block Grant and state statutes such as the California Redevelopment Law; stakeholders included labor groups like the Los Angeles County Federation of Labor (AFL–CIO), business coalitions including LA 2020, and academic partners such as California State University, Los Angeles.

Organization and Leadership

The department is led by a General Manager appointed by the Mayor of Los Angeles with confirmation by the Los Angeles City Council. Senior leadership typically liaises with commissions such as the Los Angeles Planning Commission, boards including the Board of Public Works (Los Angeles), and agencies like the Los Angeles Department of Water and Power on development projects. Organizational units align around business services, neighborhood investment, workforce development coordinated with entities like Workforce Innovation and Opportunity Act contractors, and real estate initiatives that intersect with the Los Angeles Housing Department and Los Angeles Homeless Services Authority. The department has worked with figures from philanthropic organizations such as the Weingart Foundation and corporate partners like Wells Fargo and Bank of America on program delivery.

Programs and Services

Programs include small business technical assistance in partnership with Small Business Administration (United States), loan programs working with community development financial institutions like Enterprise Community Partners and Local Initiatives Support Corporation, and commercial revitalization projects overlapping with neighborhood councils such as the Hollywood United Neighborhood Council and business improvement districts like the Downtown Center Business Improvement District. Workforce initiatives coordinate with educational institutions including Los Angeles Trade–Technical College, East Los Angeles College, Los Angeles Unified School District, and workforce training providers such as Goodwill Southern California and Defy Ventures. Sector-focused efforts have targeted industries represented by groups like Los Angeles County Board of Supervisors economic strategies, including entertainment clusters tied to Sony Pictures Entertainment, Warner Bros., and tech incubators connected to University of Southern California research.

Economic Development Initiatives

Initiatives have ranged from commercial corridor revitalization in neighborhoods like Watts, South Park, Los Angeles, and Echo Park to industrial land preservation in regions such as the San Pedro Bay shipping complex near the Port of Long Beach and Port of Los Angeles. The department has coordinated transit-oriented development around Wilshire Boulevard, Expo Line (Los Angeles Metro), and Crenshaw/LAX Line stations, aligning with regional plans by Southern California Association of Governments and LA Metro. Targeted industry attraction efforts sought film and television production in partnership with entities including the California Film Commission and digital media initiatives tied to companies such as Netflix and Amazon Studios. Business retention programs have engaged marquee employers like Los Angeles International Airport stakeholders, Cedars-Sinai Medical Center, and Kaiser Permanente facilities.

Partnerships and Funding

Funding sources include city budget appropriations approved by the Los Angeles City Council, federal grants administered via agencies such as the U.S. Department of Housing and Urban Development, state funding from the State of California and legislatures like the California State Legislature, plus philanthropic grants from organizations like the California Community Foundation and corporate support from banks and venture funds. Partnerships span municipal agencies—Los Angeles Department of Transportation, Los Angeles Police Department business crime prevention programs—regional economic development nonprofits including the LAEDC and Ninth District Agricultural Association, as well as workforce intermediaries such as Los Angeles Workforce Development Board and labor-management collaboratives like Hire LA's Youth.

Performance and Impact

Assessment metrics have included job creation counts reported to bodies such as the California Employment Development Department, small business loan portfolio performance linked to Community Development Financial Institutions Fund, and commercial vacancy trends monitored by private firms like CoStar Group and CBRE Group, Inc.. Reported successes cite business permit assistance outcomes, corridor improvements coordinated with neighborhood councils, and workforce placement rates in collaboration with America's Job Center of California. Evaluations have referenced comparative studies from think tanks like the Brookings Institution, urban policy analysis by Urban Land Institute, and academic assessments from UCLA Luskin School of Public Affairs.

Controversies and Criticism

Critiques have centered on allocation decisions scrutinized by watchdogs such as the Los Angeles County Auditor-Controller and civic advocates including LA Forward and the AARP Foundation, with disputes over tax increment approaches harking back to debates over the Community Redevelopment Agency of Los Angeles closure. Some community groups like the South Central Neighborhood Council and activists affiliated with Occupy Los Angeles and UNITE HERE Local 11 have contested incentive deals involving developers linked to firms such as Related Companies and disputes over displacement raised in cases involving Skid Row and affordable housing advocates including T.R.U.S.T. South LA. Legal and policy challenges referenced state oversight by entities like the California Attorney General and federal labor standards enforced by the U.S. Department of Labor.

Category:Government of Los Angeles Category:Public policy in California Category:Economic development agencies